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Equity REITs continued their downward trajectory this week, with FTSE Nareit All Equity Equity REITs down 1.07% from last week as rising inflation hints at another possibility of higher prices. interest rates.
The Consumer Price Index rose 0.5% M/M in January, a tick higher than expected 0.4% and a jump from the 0.1% increase in December.
“There is nothing in this CPI report to dissuade the Fed from staying the course of another quarter-point interest rate hike, but there will still be another round of jobs and inflation reports before the conclusion of the next Federal Reserve meeting on March 22. Neal Keane, head of sales operations for international brokerage ADSS, said.
Hotel REITs experienced the biggest drop in W/W value, with the index falling 4.26%.
Host Hotels & Resorts (HST) fell despite posting a hit to fourth-quarter results, as the company expects macroeconomic headwinds to affect future results. The company expects margins to decline in 2023 on a year-over-year basis, considering wage inflation, closer-to-stable staffing levels, higher insurance and utility expenses, lower churn and termination fees, and below-average occupancy levels. 2019.
Meanwhile, healthcare REITs have risen in value since last week, buoyed by strong results and investment announcements from capital market firms.
By comparison, the broader housing index fell 1.32% and the S&P 500 index was down 0.28% on a weekly basis.
Mortgage REITs were outliers, with the index up 0.66% compared to last week.